YOUR COMMON QUESTIONS
Why do you need regular car inpsection, body check and computer check? You would probably answer in something associated with sense of security or safety for your most concerns likely the loss of life, loss of money, disease, death, loss of data, file damage etc.... What about your business invested in China? Would you think of the profit & loss, growth, expansion, stability, health, risk, dispute and sustainability?
You would probably think of a no. of advance equipments for car inpsection and body check. You would need a software or hardware anti-virus firewall for computer check. Then, what kind of diagnostic tools would you think necessary for your business investment in China? Would you think of a prorfessional company serving you in this purpose? Who would be your investment guard and what type of protection tools would they offer you in China?
In car inspection, you may think of ignition parts, filters, O2 sensors and vacuum hoses. In body check, you would think of blood test, blood pressure, urine and fecese diagnosis. In computer check, you would think of spams, anti-virus, infection, anti-hacker, anti-attack and firewall. Then, what would you think your China investment firewall tools do? What would you think the most important things need to be attended?
Here, we would like to remind you that there are a no. of vital check points where we are delighted to introduce you 21 of the followings which are significantly correlated with foreign direct investment (FDI) success or failure in China. Because, each element, condition or implication of a particular matter or area of concern to one another is considered as tips, benmarks or footnotes that would be extremely severe as a crucial factor or cause of an event consequentially resulted or linked with.
Without knowing, studying and calculating thoughtfully the work or correlation of these tips, benmarks and footnotes resulting those outcome of events in a particular check point of concern, your hope of return on investment would probably not be realistic, guaranteed or secured at the end.
1. Goal - It is primary basic and important to direct where the company would go or should go. But, this is not the most vital thing amongst the others as a whole of the operating system in a company, because it is highly correlated with a no. of determinants, such as: questions of cost, feasibilty, rationality, methodology, workforce, timing, people, culture, social impact, politic, regulation, relationship and connection. Without accurate calculation and preparation of all these, a goal may never be resulted as expected or deviated far from expectation in China.
2. Index - This refers to the fact of parameters targeted as a reference supporting for business decision to be made. These parameters are denoted by internal index of interests, such as: the rate of ROI, profit, loss, success or failure by objectives, sales, damages, and target hitting. These parameters are significantly affected by determinants of people, system, culture, external factors of politic, regulation and competition.
3. Objective - This refers to the target of expectations according to the business development in a company. The reality, rationality and feasibilty of these objectives are highly afftected, altered and revised from time to time according to the change of determinants' status, formation and associated sub-events, like: new employment, resignation, steabilty and capability of manpower, culture, workplace, policy and regulation.
4. People - Money, business idea and people are three of the most vital and crucial core elements in a comapny formation. People is definitely ranked the highest important asset than all others, but people is the most complex resource to the company, because they very hard to control and manage. People in China as an employee in all levels, or as a partner is very different from all those Chinese in Taiwan, Hong Kong, Macau, Singapore, or any other Asian countries with a high majority population of Chinese or the rest of the World. How to maximize the utilisation of their intelligence and contribution effectively and efficiently is not an easy task.
5. Resource - This refers to the mean of information, intelligence, relationship, people, know-how, and social connection other than money. In China, only when we can hold an adequate and sophisticated measure and integration of these resources, we would not be able to expect to achieve a successful outcome of desired objective, goal or mission which a foreign company wants. Therefore, there is a key production concept of business success for foreign investors in China that they should know how to manage and make use of all these resources safely, adequately, effectively and efficiently.
6. Idea - This refers to a concept of motive force, source or fuel supporting for all kinds of business action, plan or decision. But ideas can be very controversial, constructive and destructive existing simultanoeusly. Business ideas from Chinese inside China are widely and generally accredited as very different and pundit from all those Chinese in Taiwan, Hong Kong, Macau, Singapore, or any other Asian countries with a high majority of Chinese or the rest of the World. The question is how to identify or distinguish who's idea is truly constructive or not.
7. Project - This refers to a particular investment of target in China for a desired return of money or other interest intended by foreign investors after investing a certain amount of time. Before a project is put into action with huge amount of resources required that foreign investors have to make, there are a no. of important questions, measurements or determinants waiting to be attended and considered. Such as: timing, feasibility, reliability, steability, safety and security of the project which are all highly determined by the most crucial element of resource: "people" in China.
8. Event - This refers to something of matter like a concept similar to all points (according to the Principle of Chinese Medical Diagnosis) around inside our entire human body referring to a joint, intersection, point with two sides of right or wrong, positive or negative, dispute, or argument in our daily business activities and operations. Without sufficient attention, knowlege, alarm indicator deployed and apperceision being made on a particular or specific event, there will be a dangerous situation missing a very important but alarming piece of information which may be indicated as a disaster signal threatenting the health or survival of the foreign company in China.
9. Management - Many foreign investors and giant corporations are proud of their management taking the company to be mightiness. But, they forgot there are a no. of very crucial determinants for continuing an effective, efficient and successful management in China that are non-existence or differentiated from their homeland. Therefore, many of them failed and left China at the end.
10. Culture - Chinese culture had been long standing for over 5,000 years ago. Today, the core of culture including confucianism, taoism and buddhism are basically remianed the same, but in today's highly modernized, westernised, capitalised and commercialised China, it has already been severely modified and diversified a lot according to the need adequately required in this Cyber era. Misunderstanding or ignoring these changes are dangerous to every foreign corporation in China.
11. Policy - China is still a developing country. Although, China today looks like a very capitalised country, the policies coding with international trade and finance are still far beyond perfect comparing with the western world. Therefore, many of the policies seem to foreign investors are still inexplicable. This is what we nornmally called a trait of China policies. Dealing with these kind of policies and turning them into productive investment blazing route should nornmally require deep professional interpretation with patient, intelligence and time.
12. Politic - Sometimes in China, politic is a key factor of fuse for business success or failure for foreign investments. Having or without standing toward or against a political position in China may suffer a big economic loss or win a good economic return for foreign investors on a particular controversial and sensitive matter implicitly defined by the Government of China. In order to avoid troublesome or financial loss without sufficient intelligence and attention being made, foreign investors are advised better to hire the service from a professional agent or institution for accurate interpretation or protection.
13. Regulation - In China, regional regulations coding with international trade and finance are basically followed under the Central Policy in many cities. According to the local characteristic and difference of resources in some cities, such as: culture, quality and quantity of certain particular resources, geography, level of modernization and civilization, rural level, education, infrastructure and communication, some regulations may be interpreted differently. Therefore, a particular regulation under the same Central Policy in one city may not necessary be the same or applicable to another city.
14. Language - In China, Mandarin or Putonghua is the official spoken dialect. Chinese character is the official writen language which consists of two major types. They are Simplified Chinese character and Traditional Chinese character. Both of them are meaning the same to each other. But, there are still many spoken dialects other than Mandarin or Putonghua in China. Not 100% of the whole population of Chinese people would like or prefer to speak Mandarin or Putonghua, many of them in certain regions still occupy a majority of high percentage speaking in their own mother tonque, such as: Hong Kong. Therefore, studying of Chinese dialect and language are not only severe important for minimizing the communication barrier with Chinese people, but also better understanding of Chinese intelligent elements embed in the their culture of confucianism, taoism and buddhism that are commonly used in their daily business thinking and collaborations with foreign companies.
15. Relation - This refers to the art of establishing relationships with Chinese while foreigners wanting their ventures to thrive in China market. This may covers of Chinese etiquette, meaning of handshaking with one hand or two while presenting name card to Chinese party, attitude of talking, smiling and body lanaguge. Only when you are willing to learn, listen, study, understand and accept this type of art, you willing be getting Guanxi, that means relationship establish between each other very fast, or otherwise, these will all become your deal-killers.
16. Connection - This refers to the network of relationship (or Guanxi) established in China. If you expect to have a short-term profit-making business in China as only an exercise in, you may better stay at home because you'll be disappointed. Therefore, only when you are willing to spend long period of time in establishing highly quantified and qualified networks of relationships with Chinese, you will be expecting to get things done more economically, easily and fastly.
17. Costing - This refers to the discrepancy concept of conventional and practical costing for FDI in China. Conventional costing looks as a hob of all similar, standard and common cost items collected by local professional institutions to the foreign companies. Foreign investors are easily overlooking the impact of real determinants affecting the actual and overall costing of their investment in China. These include the quality of labour, effect of culture, regulation, and political issues, massiness of relationships, diversified and deployed connection of relationship network, and flexibilty of their decision making and principle of getting things done. Miscalculating and ignoring all these practical discrepancy costing will result in huge amount of overspending or loss or business failure.
18. Profile - This refers to the form of FDI (including greenfield, acquisition, joint ventures, alliances, subcontracting, agency and licensing) in China. Different form of investment requires a wide variaty of different determinants and resources depending on the nature of the investment. Calculation and integration of all those relevant determinants and resources on makng a form of investment correctly are very important and crucial to the success of investment.
19. Employment - Inflow of FDI into China will definitely change and affect the zoology of employment in domestic market across the whole nation of China. Regarding the competition between local and foreign corporations, more and more domestic labours are willing to work in the foreign corporations by the attraction of transfer of high technology, managerial skill, financial skill, marketing skill, lot of western knowledge, high remuneration and fringe benefit. Local coporations will definitly not staying unchange of their employment policies and conditions, they would have a lot of ways effectively keep themselves in highly favorable competitive position with sufficient high quality of employees.
20. Workplace - This refers to a colligated concept of determinants for FDI in China where environment of place, tools and domestic connections, processes of transfer and learning of technology, skills, know-how, innovation, communication by mean of data access, groupware, mobileware, where and when people interact and exchange of knowledge, information, motivated personal gain in term of money, power, special status by using unethical, misconduct of profession, illegal way to manipulate a specific task or aim that diverting attention away from their performance shortfalls and misdeeds. Thus, a special kind of relationship outside of the foreign corporation's organisation structure, consent and acknowlegement will be established. If a foreign corporation is in an unhealthy workplace, bullying, aggression, conflict, deviance, counterproductive work behaviour, cyber- aggression, emotional behaviour, incivility, sabotage, and violence will be happened in any time.
21. Welfare - This refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of well being and fringe benefits from foreign employers for all domestic labours without the stigma of charity. In most developed western countries, welfare is largely provided by the government, in addition to charities, informal social groups, religious groups, and inter-governmental organizations. But in China, this is a very serious and important precaution for all inflow of Foreign Direct Investment FDI corporations have to be aware and attend to. Recently, there is a social phenomenon that more and more local labours took unfavourable, aggressive, cyber aggressive, violence, emotional, sabotage and incivility behaviour to damage the corporation's benefit in China. One of the examples was that there were over twenty labours choosen to suicide by dumping down to the street from top of the factory building in 2010.